Oracle Corporation (ORCL)
Profitability ratios
Return on sales
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 74.42% | 70.62% | 56.74% | 66.70% | 69.74% |
| Operating profit margin | 28.99% | 26.21% | 25.74% | 37.58% | 37.65% |
| Pretax margin | 22.17% | 18.27% | 18.02% | 32.11% | 32.69% |
| Net profit margin | 19.76% | 17.02% | 15.83% | 33.96% | 27.46% |
Oracle Corporation's profitability ratios have exhibited fluctuations over the past five years. The gross profit margin has shown an increasing trend, reaching 74.42% in 2024 from 56.74% in 2022. This indicates Oracle has been able to effectively manage its cost of goods sold relative to its revenue.
The operating profit margin has also shown an upward trend, reaching 28.99% in 2024 from 25.74% in 2022. This suggests that Oracle has been successful in controlling its operating expenses and improving operational efficiency.
The pretax margin has fluctuated over the years, with a notable decrease in 2021 and 2022 followed by a recovery in 2023 and 2024. This indicates fluctuations in Oracle's ability to manage its pre-tax income relative to its total revenue.
The net profit margin has shown a similar fluctuating trend, with a significant drop in 2021 and 2022 followed by a recovery in the following years. This suggests variations in Oracle's ability to generate profits after accounting for all expenses and taxes.
Overall, Oracle Corporation's profitability ratios reflect a mix of improvements and fluctuations in its ability to generate profits over the past five years. Further analysis would be needed to understand the drivers behind these trends and to evaluate the sustainability of Oracle's profitability in the future.
Return on investment
| May 31, 2024 | May 31, 2023 | May 31, 2022 | May 31, 2021 | May 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 10.89% | 9.74% | 10.00% | 11.60% | 12.04% |
| Return on assets (ROA) | 7.42% | 6.33% | 6.15% | 10.48% | 8.78% |
| Return on total capital | 17.95% | 14.44% | 15.79% | 19.07% | 17.29% |
| Return on equity (ROE) | 120.26% | 792.45% | — | 262.43% | 83.94% |
Oracle Corporation's profitability ratios have shown fluctuations over the past five years.
1. Operating return on assets (Operating ROA) has ranged from 9.74% to 12.04%, with a current value of 10.89%. This ratio indicates that Oracle is generating approximately 10.89 cents of operating income for every dollar of assets employed.
2. Return on assets (ROA) has varied between 6.15% and 10.48% over the same period, with the latest value at 7.42%. ROA measures Oracle's overall efficiency in generating profits from its assets, and the current ratio indicates that Oracle earned 7.42 cents in net income for every dollar of assets.
3. Return on total capital has fluctuated between 14.44% and 19.07% over the past five years, with the current value at 17.95%. This ratio reflects the company's ability to generate returns for both equity and debt holders, indicating that Oracle is currently generating a return of 17.95% for each dollar of total capital employed.
4. Return on equity (ROE) has shown significant variability, ranging from 83.94% to 792.45%. The current ROE stands at 120.26%, indicating that Oracle is currently generating a return of 120.26% for each dollar of shareholder equity.
Overall, while Oracle Corporation's profitability ratios have experienced fluctuations, the company has generally demonstrated effective utilization of its assets and capital to generate profits, with a strong ability to generate returns for its shareholders.